Having life insurance is pertinent to Canadians. However, a lot of people do not understand how their term life insurance works. There is a good chance that you fit into this category. Well, you should know that your life insurance might have a cash surrender value. This is far more important than you could ever imagine. In the event you have to ever have to cancel your policy, you’ll want to find out about the cash surrender value.
What Is The Cash Surrender Value?
The cash surrender value is the cash value of your insurance policy. In most cases, CSV is only going to be applicable for whole life and universal life insurance policies. And, you should understand that the amount is going to be your accumulate investment. This matters a lot if you need to withdraw cash from your policy or simply want to cancel your insurance. If you want to cancel and cash out your life insurance policy, the cash surrender value will prove to be very important.
Why It Matters
The cash surrender value is the amount that is payable to the policyholder when they cancel their policy. To get started, if you are cancelling coverage, you will need to contact the insurance company and request for your policy to be surrender. This means that you want the policy canceled. And, you are requesting the cash value to be returned to you. The only downside is that you’re not going to receive the full amount. After all, the insurance company is going to charge certain fees. Before you receive the money, the fees will be taken out of it.
Remember that there are other ways to get money from your term life insurance policy. You might want to consider borrowing from your life insurance. This might be a better option than giving up your death benefits. Cashing out your life insurance is not a good idea unless you’re positive that you’re not going to pass anyway anytime soon. Otherwise, you’re going to leave your family exposed.